Dollar Hits Weekly High as Middle East Conflict Rattles Markets

The dollar index, which tracks the greenback against six major peers, held steady at 100.96, marking its strongest position since mid-July. Against the yen, the currency remained anchored at 162.50, while the euro and British pound stayed relatively flat at $1.1415 and $1.3434 respectively. The pound's resilience followed commitments from Britain's new leader, Andy Burnham, to maintain strict fiscal discipline despite the external pressure on global markets.

Oil prices continued to swing near six-week highs as traders weighed the impact of the blockade against the possibility of a diplomatic pause. Rodrigo Catril, senior currency strategist at NAB, noted that while market participants remain hopeful for a cessation of hostilities, the underlying conditions remain highly volatile. U.S. Treasury yields have begun to climb as investors hedge against the risk that rising energy costs will reignite inflationary pressures, particularly if tensions with Iran escalate further.